AMCHAM’s Karnataka Chapter hosted an interactive session, in partnership with Cushman & Wakefield, on ‘Growing Institutionalization and Impact on the Bengaluru Office Market’ on October 14th. This was a closed door session with select U.S. companies and C&W leadership. The discussion focused on the fact that Bengaluru, Asia Pacific’s second-largest Grade A office market by stock after Tokyo, remains #1 in terms of office demand in the country. The strong market fundamentals and superior quality office assets in India have seen this asset class garner a lion’s share of the last decade’s institutional fund inflows. As of Q2 2022, 33% (~55 MSF) out of 168 MSF of Grade A office space stock in the city, has investor participation either through full ownership or partial stake, up from just 4% in 2010. The large institutional presence has amounted to an enormous transformation, resulting in a multifold change in the quality of office assets and services. With this context in mind, the session covered how Bengaluru accounts for 20-25% of India’s gross leasing for office space with robust demand from IT, engineering, BFSI occupiers, and their GCCs. Despite a decline in leasing momentum during 2020; rents have risen to an average of one dollar and twenty-five cents from its sub-dollar start. The session also covered how investors are primarily targeting income-yielding assets, but they are also willing to assume some development risk, given the strong market fundamentals. The session was attended by IBM, Trellance, Fidelity and Citrix.
By joining AMCHAM India, you become part of an active and dynamic Apex Chamber of U.S. Industry in India with a membership base of more than 400 American companies in India. AMCHAM is an important voice for policy advocacy, a critical source for business intelligence, a vibrant platform for networking and expanding your business.